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Stanley Black & Decker (SWK - Free Report) recently beat and raised full year earnings guidance as first quarter business was robust. This Zacks Rank #1 (Strong Buy) is expected to see double digit earnings growth in 2017.

Stanley Black & Decker provides hand tools, power tools and related accessories, electronic security solutions, healthcare solutions and engineered fastening systems globally.

In business since 1843, it owns numerous iconic brands including Stanley, DeWalt, Black & Decker, Irwin Tools, Lenox and Craftsman, which is recently acquired.

A Big Beat in the First Quarter

On Apr 21, Stanley Black & Decker reported its first quarter results and blew by the Zacks Consensus by 10 cents. Earnings were $1.29 versus the consensus of $1.19.

Revenue jumped 5% to $2.8 billion, boosted by 5% organic growth.

Organic growth was led by Tools & Storage, which jumped 6%, while Industrial gained 4%. The Security segment was only "modestly" positive.

All regions contributed to the Tools & Storage gain, with North America gaining 8%, Europe up 6% and the Emerging Markets up 1%.

Operating margin rate expanded 50 basis points to 13.6%. Taking out M&A related charges, the operating margin rate jumped 110 basis points to a new first quarter record of 14.2%.

Raised Full Year Guidance

On March 10, the company had updated its full year guidance after the sale of its Mechanical Security business and the acquisition of Craftsman and Newell Tools.

It is raising the 2017 outlook again to a range of $7.08 to $7.28, primarily due to an improved outlook for its industrial businesses.

The analysts are bullish on Stanley Black & Decker. 6 estimates were raised since the earnings report, which has pushed the 2017 Zacks Consensus Estimate up to $7.21 from $7.05 in the last 30 days.

That's earnings grow of 10%. Not too shabby for a company around 174 years.

Analysts are equally as bullish on 2018 as they see another 12% earnings growth.

Shares at 5-Year Highs

Shares have soared in the last year but the 5-year chart doesn't look too bad either.

But even with the new highs, Stanley Black & Decker trades with a forward P/E of 19.3 which is mostly in line with the rest of the stock market. It doesn't have excessive valuations.

Investors also get a dividend, currently yielding 1.7%.

The company is operating on all cylinders right now.

For investors looking to get into the hand and power tools area, Stanley Black & Decker is one to keep on the short list.

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